Building a successful manufacturing and distribution process business can be tough, but the financial return can be huge. During the early years, it’s common for companies in these industries to make significant investments in equipment, machinery, and other fixed assets. These assets all come at a steep price, but once they’ve been purchased you are set to start bringing in the cash, right? Not always.
One problem that many companies in the manufacturing and distribution business face are needing to wait 30, 60 or even 90 days for their clients to pay them. Unfortunately, these waiting periods aren’t always something that you can negotiate and if you want to sign larger and more profitable contracts, then you need to find a funding solution that will meet your needs.
Factoring services are a great way to close the gap between invoicing and payments received. With factoring, the factoring company will forward you a large portion of your accounts receivable for the products that you have shipped to your customers. Upon your customer’s full payment, the rest of the money minus a small factoring fee will be paid to you. Some of the other benefits of factoring the accounts receivable of your manufacturing and distribution business include:
Whether you’re manufacturing auto parts, candles, home décor or stainless steel products, factoring solutions can work for you. Keep your business operating today and make sure that you can continue expanding your business tomorrow by partnering with a reputable factoring company. Building your manufacturing business starts with ensuring you have the working capital you need to fund your operating cycles, accept greater supplier discounts and take on more clients. Factoring can help you achieve these goals.
The factoring professionals at Interstate Capital have been helping manufacturers and distributors build their businesses almost 25 years. Contact us for a factoring rate quote today.